Who Should Get a Life Insurance Policy?
Understanding When and Why a Life Insurance Policy Makes Sense
Most of us don’t wake up thinking about life insurance. It’s one of those topics that tends to sit on the back burner until something—or someone—makes us stop and consider it. But if you’ve ever asked yourself, “Do I really need a life insurance policy?” you’re not alone.
The truth is, there’s no one-size-fits-all answer. Life insurance isn’t just for parents with young kids or people approaching retirement. It’s a flexible financial tool that can support you and your loved ones through various stages of life. And whether you’re just starting out or well into building your legacy, there’s likely a scenario where it makes good sense to get life insurance.
Here’s a closer look at who should consider a life insurance policy—and why it might matter more than you think.
Young Adults Starting Their Careers
You might not have a mortgage or dependents yet, but if you’re young and healthy, now is actually one of the best times to get life insurance. Why? Because your premiums will likely be at their lowest, and you can lock in that rate for years. If you develop a medical condition later on, it could make coverage more expensive—or harder to get altogether.
Plus, many life insurance policies come with options to convert to longer-term or permanent coverage down the road, giving you more flexibility as your life evolves.
Families With Dependents
This is the group most people think about when discussing life insurance—and for good reason. If you have children, a spouse, or aging parents who rely on your income, a life insurance policy can help ensure they’re not left in a financially vulnerable position if something were to happen to you.
It’s not just about covering funeral costs—it’s about replacing income, paying down a mortgage, and making sure your family has the stability they need to move forward.
Homeowners and Mortgage Holders
If you’ve purchased a home, you’ve likely taken on one of the biggest financial commitments of your life. A life insurance policy can help pay off your mortgage in the event of your death, so your loved ones can stay in the home without the added burden of monthly payments.
While mortgage life insurance from your lender is an option, it’s often better to get life insurance that isn’t tied to your loan. It’s more flexible, portable, and can offer better long-term value.
Life changes quickly—and so do your financial responsibilities. A well-structured life insurance policy doesn’t just cover what you have today; it’s designed to adapt and protect what you’re building for the future. Whether you’re starting out or raising a family, there’s almost always a good reason to get life insurance.
Self-Employed Professionals and Business Owners
If you’re self-employed or own a business, your income may not be as predictable as someone with a 9-to-5. You might also have team members or business partners who depend on you. A life insurance policy can protect your business and your family by covering debts, funding buy-sell agreements, or ensuring a smooth transition if something unexpected happens.
Plus, if you have business loans or personally guaranteed credit, a policy can help cover those obligations so they don’t fall to your family or business partners.
People with Co-Signed Debt
Even if you don’t have dependents, you may have a co-signer on your student loans, car payments, or credit lines. If you were to pass away, your co-signer could still be responsible for that debt. A life insurance policy ensures they’re not left covering that burden on their own.
Stay-at-Home Parents
Just because you don’t bring home a paycheque doesn’t mean your contribution isn’t financial. Childcare, meal prep, household management—it all adds up. If a stay-at-home parent were no longer there to fill those roles, the cost of replacing those services could be significant.
Getting life insurance for stay-at-home parents helps offset those future costs and provides an added layer of stability for the entire household.
Empty Nesters and Retirees
Even if your children are financially independent and you’re retired, a life insurance policy can still serve a purpose. It can be used to cover final expenses, settle estate taxes, or leave a legacy to children or grandchildren. Permanent life insurance, in particular, is often used for estate planning and charitable giving.
It’s also worth considering that the longer you wait to get life insurance, the more expensive it becomes. If you’re in your 50s or 60s and still have financial obligations—or simply want to provide a tax-free benefit to your family—a policy can still offer value.
Final Thoughts on Who Should Get A Life Insurance Policy
Getting a life insurance policy isn’t just about age, income, or family size. It’s about protecting what matters most and preparing for the unexpected. If you have anyone who relies on you—or if you’ve taken on financial responsibilities you wouldn’t want to pass along—there’s likely a good reason to get life insurance.
And while the idea of buying coverage might seem overwhelming, it doesn’t have to be. The process is often simpler (and more affordable) than people expect, especially when you work with someone who can tailor a policy to fit your goals.
If you’re unsure whether you need a life insurance policy, or how much coverage makes sense, feel free to reach out. A quick conversation can go a long way in building confidence—and peace of mind—for whatever stage of life you’re in.